SMSF TRUST DEED ESTABLISHMENT SAMPLE SMSF

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SMSF TRUST DEED ESTABLISHMENT

SAMPLE SMSF

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DEED OF ESTABLISHMENT OF SAMPLE SMSF

THIS DEED IS DATED:

PARTIES:

1. TRUSTEE OF THE FUND: SMSF Corporate Pty Ltd - ACN 000 000 000 of 123 Main Street, BRISBANE, QLD 4000 (“the Trustee”).

RECITALS:

a) The Trustee establishes the Superannuation Fund known as ‘Sample SMSF’ (“the Fund”) on execution of this Deed, in accordance with this Deed as a Self Managed Superannuation Fund. The Trustee is a Corporation who executes this Deed. A director of the Corporate Trustee cannot be a Disqualified Person unless authorised by the Regulator.

b) hereby apply for initial membership of the Fund.

c) The Trustee intends that the Fund should be a complying Self Managed Superannuation Fund (“complying SMSF”) for the purposes of the Superannuation Industry

Supervision Act 1993 (“SIS Act”), the Income Tax Assessment Act 1997 (“Tax Act”) and other Superannuation Laws.

d) By execution of this Deed the Trustee signifies its consent to be appointed as the initial Trustee of the Fund as well as the Director(s) becoming members of the Fund. The Director(s) acknowledge that they have read the Rules of the Fund, the Product Disclosure Statement and agree to be bound by them.

e) The purpose of the Fund is to provide superannuation benefits to Members and in the event of their death, for their Dependants and to act for any other purposes as permitted from time to time under the SIS Act 1993 and SIS Regulations 1994. PROVISIONS:

1. Establishment of the Fund: The Trustee establishes the Fund as a trust to be administered in accordance with this Deed.

2. Name of the Fund: The Fund will be known by that name determined by the Trustee. Such name may be changed by the Trustee according to the Rules of the Fund.

3. Initial Trustee: The Trustee confirms that it will act as the initial Trustee of the Fund in accordance with this Deed.

4. Rules of the Fund: The Rules of the Fund are the Rules attached to this Deed and may include any further amendments, changes or additions to the Rules made in accordance with the provisions of the Deed and the Rules.

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6. Successor Acts: A reference to an Act includes a reference to any successor Act to that Act.

EXECUTED AS A DEED BY: The Trustee

SMSF Corporate Pty Ltd - ACN 000 000 000 of 123 Main Street, BRISBANE, QLD 4000 by being signed by the persons authorised to sign on behalf of the company pursuant to section 127 of the Corporations Act 2001:

/MemberOne/

Member One

Director/Secretary

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MINUTES OF MEETING TO ESTABLISH THE OPERATION OF

SAMPLE SMSF

DATE: PRESENT: Member One. HELD AT:

123 Main Street, BRISBANE, QLD 4000. CHAIRPERSON:

Member One was appointed Chairperson of the meeting.

TABLE A MOTION TO ESTABLISH THE OPERATIONS OF THE FUND:

The Chairperson tabled a motion to establish the operations of Sample SMSF under the Fund’s SMSF Strategies Rules. This means, amongst other things that the Trustee should undertake the following steps:

1. Become a regulated complying self-managed superannuation fund;

2. Apply for an Australian Business Number and a Tax File Number for the fund;

3. Establish a cash account (such as a cash management trust) or cheque account for the fund as a clearing account for contributions and monies received and benefits and monies paid. Monies need to be deposited into this account as soon as practicable to cater for the

running expenses of the fund;

4. Appoint an administrator and/or accountant to the fund. The administrator and/or

accountant’s role is to provide information and reports as required under any administration agreement between the Trustee of the fund and the administrator;

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TRUSTEE RESOLUTIONS:

IT WAS RESOLVED by the Trustee to complete the following:

1. Establish a cash account and deposit funds in the account to be held in the name of the Trustee;

2. Notify the ATO of the fund’s intent to become a regulated self managed superannuation fund as well as completing ABN and TFN forms to be filed with the ATO;

3. Formulate and implement an investment strategy of the fund in accordance with section 52(2)(f) of the SIS Act 1993;

4. Seek consent to act and appoint relevant professionals including, where required, an accountant, administrator, auditor, SMSF expert, SMSF investment expert and any other professional.

5. Accept as initial Member of the Fund.

MEETING CLOSED:

SIGNED BY THE CHAIRPERSON: /MemberOne/

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THE SMSF STRATEGIES GOVERNING RULES

Part One – Rules to Establish the Fund

Rule 1 – Things to know about these Rules and the Fund

1.1 The “SMSF Strategy Guide” in the Explanatory Memorandum to the Rules of the Fund are designed for information purposes only and is not to be construed as forming part of the Rules of the Fund. If in any dispute, misunderstanding or action regarding the Rules, the Trustee, Court, the Regulator or any other person may have regard to SMSF Strategy Guide” or any part of the Explanatory Memorandum to determine the Rule’s ordinary meaning.

1.2 Where singular is used in the Rules it is to also mean plural and if a gender is used it is also to mean the opposite gender.

1.3 A reference to any entity, body, company or person also includes a reference to those persons or entities that have authority to act on behalf of the party including their successors, assigns, representatives, Responsible Officers, a person holding someone’s Power of Attorney, Enduring Power of Attorney and a Legal Personal Representative.

1.4 Where a word is Capitalised it may be found in the “Definitions” Rule in Part Six of the SMSF Strategies Rules.

1.5 The Rules of the Fund are to be governed by the law where the Trustee resides unless the Trustee resides outside Australia or chooses elsewhere. If the Trustee resides outside Australia or the Trustees reside in different Australian States then the governing law is that chosen by the Trustee and if not chosen by the Trustee it is the governing law of the State of Victoria.

1.6 Where the term “SMSF” is used it means a “Self-Managed Superannuation Fund” as defined in the Superannuation Laws.

1.7 Where there is conflict between the Rules and the Superannuation Laws, the Superannuation Laws are paramount unless, at the discretion of the Trustee a breach of the Superannuation Laws by the Trustee of the Fund or Member does not result in a fine, penalty or non- compliance certificate or adverse determination delivered to the Regulator for the Trustee, Fund or Member.

Example: The Rules of the Fund provide that the Trustee of the Fund may accept

an in- specie contribution. However as the Superannuation Laws and in particular section 66(1) of the SIS Act 1993 do not allow the Trustee of a SMSF to acquire residential property from a Member or Related Party, Rule 1.7 limits the Trustee’s abilities to acquire an Asset from a related party as it breaches the Superannuation Laws.

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1.9 In accordance with Rule 1.7 and the requirement for the Trustees of the Fund to ensure that the Fund remains a Complying SMSF, the Rules are written as being subject to the Superannuation Laws. Where the Trustee or any other person enters into a transaction, undertaking, agreement, understanding or any other arrangement that has the effect of the Trustee breaching the Superannuation Laws or being deemed a non-complying SMSF by the Regulator as a consequence of the Trustee’s or other persons action, the transaction, undertaking, agreement, understanding or any other arrangement is to be rendered to the extent it has breached the Superannuation Laws void ab-initio subject to and conditional upon the Superannuation Laws allowing.

1.10 The Sole Purpose test, including the core and ancillary purposes of the Fund are

specified in Section 62 of the SIS Act 1993. These are to provide retirement, incapacity, sickness, death and any other benefits allowed by the Superannuation Laws to Members of the Fund or to Members, former Members or for any other purpose, determined by the Fund Trustee, upon the winding up of the Fund. This shall be the case except where the Trustees of the Fund are individuals then the primary purpose of the Fund shall be to provide old age pensions.

1.11 Where the Trustee of the Fund and the Member have agreed or put in place

arrangements including but not limited to Reversionary Pensions, SMSF Wills, Death Benefit Nominations, under previous Governing Rules that are of the same effect as a Special Rule then these Rules are to be retained in their original form as a Special Rule of this Fund.

Example: A Member of a Fund has in place a Lifetime Complying Pension that was

commenced in 2004 and seeks to retain the benefits of this Pension such that the Pension is not to be terminated. This sub-rule 1.11 ensures that the Pension continues on unvaried whilst the remaining Governing Rules are varied at execution of the deed of variation.

Rule 2 – Trusteeship of the Fund

2.1 At all times there must be a Trustee of the Fund commencing from the appointment of the Initial Trustee of the Fund. The Trustee may be one or more individuals and/or a company or companies acting as Trustee or Trustees of the Fund. Where the Trustees are individuals, the primary purpose of the Fund is to pay Income Streams or Pensions inclusive of old age pensions to Members of the Fund unless otherwise authorised by the Superannuation Laws or the Regulator.

2.2 If the Trustee is a company, then any director of the Trustee Company must not be a Disqualified Person unless otherwise allowed by the Regulator or the Superannuation Laws. If the Trustee is an individual they must not be a Disqualified Person unless otherwise allowed by the Regulator or the Superannuation Laws.

2.3 The Trustee must ensure that, while these Rules are in force, the Fund is maintained as a Complying SMSF and a regulated superannuation fund including but not limited to meeting the membership and trustee standards as they apply at the time for a SMSF under the Superannuation Laws.

Note: In order to obtain concessional taxation benefits the Trustee of the Fund

must ensure that during any income year the Fund is maintained as a Complying SMSF. The Trustee is to be vigilant in that regard and may engage the services of professionals to ensure compliance.

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Trustee or Additional Trustee must consent to their appointment, not be a Disqualified Person unless otherwise allowed by the Regulator or the Superannuation Laws and agree to abide by the Rules of the Fund, the Superannuation Laws and with best endeavours ensure the Fund remains a complying SMSF.

Example: One Member of a two Member Fund with individual Trustees dies and a

Legal Personal Representative becomes a Replacement Trustee of the Fund. When Death Benefits become payable the Legal Personal Representative must resign and an Additional Trustee or new Member/Trustee must be appointed within six months from the date of resignation of the Replacement Trustee. If the remaining Trustee does not appoint a Replacement Trustee or new Member/Trustee the Fund will no longer be a SMSF and serious financial consequences may arise. Generally it is advised that the Trustee seek advice from a suitably qualified SMSF legal expert at the time of death of any Member of the Fund.

2.5 Any Trustee is to be removed as Trustee under one or more of the following conditions:

a) the Members of the Fund in a Member’s Meeting remove the Trustee of the Fund;

b) the Trustee retires or resigns and a new Trustee has been appointed;

c) where the Trustee is of the opinion that the continued appointment of the Trustee will result in the Fund becoming a non-complying SMSF or the Fund becoming impractical;

d) if the Trustee is prohibited from being a Trustee under the Superannuation Laws or where the Regulator otherwise determines including where the Trustee is a Disqualified Person;

e) where the Member that the Trustee, Replacement Trustee or Additional Trustee acts for is no longer a Member of the Fund including the Trustee/Member or Director/Member themselves.

2.6 The Trustee agrees to be bound by the Rules of the Fund, the Superannuation Laws and any direction the Regulator may provide if reasonable.

2.7 The Trustee or Member may be required at relevant times under the Superannuation Laws to notify or make a declaration to the Regulator or some other person of events, things, happenings or changes to the Fund. The Trustee or Member will ensure that it seeks to meet any such notification or declaration requirement in the specified time required. The Trustee is not required to register any change in Trustee under any Superannuation or State Law.

2.8 Where the Fund is determined by the Regulator to no longer be a SMSF or the Trustee decides not to retain the Fund’s SMSF status, the Trustee is to immediately resign and an RSE Licensee is to be appointed or all Members Superannuation Interests are to be rolled over to another regulated Superannuation Fund.

2.9 Where a Member of the Fund dies, within a period of five months from the date of the Member’s death:

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b) At the commencement of the payment of the Member’s Death Benefits to the deceased Member’s Dependants or their Legal Estate the Replacement Trustee appointed on behalf the deceased Member must resign;

c) If the Fund’s Corporate Trustee has appointed the deceased Member’s Legal Personal Representative as a director they are to be removed once Death Benefits commence to become payable to the deceased Member’s Dependants or their Legal Estate. If the Corporate Trustee does not remove the deceased Member’s Legal Personal Representative as a director upon the payment of the deceased Member’s Death Benefits then the Corporate Trustee is to be replaced as Trustee.

2.10 Where a Member loses their mental capacity and is no longer able to function as a

Trustee of the Fund:

a) The mentally incapacitated Member’s Legal Personal Representative, subject to their consent, is to be appointed as a Replacement Trustee of the Fund or director of the Corporate Trustee if permitted under the constitution of the Corporate Trustee;

b) The Replacement Trustee is to have the same voting powers as the Member if they were acting as Trustee.

2.11 Where the Superannuation Laws are amended in terms of Trustee and Member

requirements for a SMSF the Trustee is to ensure that the Trustee meets the required changes for a SMSF within the time frame specified under the Superannuation Laws.

2.12 Any removal or appointment of a Trustee shall be effected by deed or written

resolution by the Trustees or Members of the Fund as required in Rule 2. Any deed or resolution for this purpose does not need to be registered unless the Superannuation Laws otherwise require.

2.13 Where the Trustee is liable to pay a fine for a breach of the Superannuation Laws

the Trustee, unless the Superannuation Laws allow, may not be indemnified from assets of the Fund or accounts of the Fund including Reserve Accounts, Earnings, Insurances or from any other monies in the Fund provided the Trustee of the Fund does not incur further penalties. Where the Trustee is an individual consideration should be given to changing the Trustee to a company to limit personal liability for any fines imposed by the Regulator.

2.14 The Regulator may require the Trustee of the Fund or a director of the Fund’s

Trustee to complete trustee superannuation education. The Trustee of the Fund must comply with any formal education notice.

Rule 3 – Membership of the Fund

3.1 Any person or entity with the consent of the Trustee and including a deceased Member’s Legal Personal Representative without Trustee consent may become a Member of the Fund provided the Superannuation Laws allow and the Fund retains its status as a Complying SMSF. The Trustee must not accept a Member to the Fund if the person’s Membership would result in the Fund no longer being a SMSF unless the Trustee otherwise decides.

Example: This may exclude the acceptance of a non-resident Active Member or an

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3.2 The Trustee may:

a) Impose terms and conditions for Members joining the Fund including but not limited to future Members.

b) Establish different classes of Membership if so desired. Prior to establishing a new class of Membership, existing Members must be notified of the new class of membership and the associated rights, entitlements and benefits attached thereto. The Trustee may classify, in writing that recipients of Income Stream benefits are a separate class if so desired.

c) Limit the persons who may become or be Members of the Fund with any such amendment to be by way of a variation to the Rules of this Fund.

3.3 On becoming a Member of the Fund the Member must agree to abide by the Rules of the Fund. This includes but is not limited to acting as Trustee or director of the Corporate Trustee where required; providing a Member’s Tax File Number and any other information the Trustee may require including relevant insurance details. The Member must adhere to any other requirements that may be necessary of Members joining a Complying SMSF.

3.4 The Legal Personal Representative of a Member including a deceased Member is deemed to be the Member for the purposes of the Rules and therefore holds all rights and entitlements of the Member or a deceased Member. For the sake of clarity a deceased Member’s Legal Personal Representative continues the deceased Member’s membership under the Rules of the Fund provided the Superannuation Laws allow.

3.5 The Member, on joining the Fund agrees to have read and understood the Fund’s Product Disclosure Statement.

3.6 A Member ceases to be a Member of the Fund, subject to the Trustee’s discretion and the Superannuation Laws upon the earliest of any of the following to occur: a) The Member Rolls Over or transfers all of their Superannuation Interests to

another complying Superannuation Fund unless the Trustee otherwise allows the Member to remain as a Member;

b) The Member dies and the Trustee has paid out all the deceased Member’s Death Benefits to the Member’s Legal Personal Representative or Dependants or any other person, trust or entity. In these circumstances the deceased Member’s Legal Personal Representative will cease to be a Member or be the continuation of the deceased Member of the Fund at the time Death Benefits are fully paid; c) More than five months has elapsed since the Member was capable of being a

Trustee of the Fund or a director of the Corporate Trustee unless the Member has appointed a Replacement Trustee;

d) In the opinion of the Trustee the Member is a Disqualified Person and the Member’s continuing membership may result in the Fund no longer being a Complying SMSF or result in a penalty or fine unless the Regulator provides otherwise;

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f) The Member is a party to proceedings or any agreement pursuant to the Family Law Act 1975 or equivalent legislation for de facto relationships under Commonwealth, State, Territory or a foreign law and the Trustee is of the opinion that the Member should cease being a Member of the Fund;

g) When the Member no longer has any Superannuation Interest in the Fund and the Trustee determines that the Member should no longer be a Member of the Fund;

h) If the Superannuation Laws, the Regulator or a Court requires the Member to cease their Membership of the Fund;

i) Where the Trustee is of the opinion that for the benefit of the Fund the Member should cease their Membership of the Fund, at the same time the Trustee is to remove the Member as Trustee or request the Corporate Trustee to remove the Member as director of the Corporate Trustee.

3.7 Where a Member ceases Membership of the Fund, the Trustee must resolve to pay the Member their Superannuation Interest as a Superannuation Benefit and/or Transfer Superannuation Interest within a reasonable time or as otherwise required under the Superannuation Laws.

3.8 If, upon cessation of Membership of the Fund, a Member is required to Rollover or transfer their Superannuation Benefits the Trustee must request from the transferring Member notification of the complying status of the transferee Superannuation Fund. The request must include a demand for a response in relation to the proposed transferee Superannuation Fund from the departing Member within a reasonable period of time or such other time as is required under the Superannuation Laws. If the departing Member does not respond to the Trustee’s request within a reasonable time, or such other time as the Superannuation Laws require, the Trustee may transfer the transferring Member’s Superannuation Benefits to an Eligible Rollover Fund.

3.9 Any Transfer, Rollover or Superannuation Benefit payment must be made by the Trustee within any time required under the Superannuation Laws or alternatively within a reasonable period of time. The payment where required may be processed through any appropriate government required payment system including Super Stream.

Rule 4 – Becoming an Operating Regulated SMSF

4.1 Upon establishment of the Fund and the initial appointment of the Trustee, the Trustee is to ensure that the Fund becomes a Regulated Superannuation Fund under the Superannuation Laws.

4.2 As soon as practicable the Trustee must take such actions, appoint such SMSF Professionals as required including an Auditor, a SMSF Adviser, deal with the Regulator and do all things necessary to make the Fund operational as a Complying SMSF including obtaining a tax file number and Australian business number. This may include a mandatory training or education if required under the Superannuation Laws and by the Regulator.

Rule 5 – Creating and Transferring Member Superannuation Interests

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Superannuation Laws. The Trustee may hold one or more Superannuation Interests on behalf of a Member or their Legal Estate.

5.2 Any Superannuation Interest created by the Trustee for the Member may include a Member Lump Sum Superannuation Interest, a Member Income Stream Superannuation Interest, a Reserve or any other Superannuation Interest or Member’s account allowed under the Superannuation Laws.

5.3 A Member Superannuation Interest does not have to commence or be maintained with any Assets or Contributions.

5.4 A Member may request the Trustee to transfer a Member Income Stream Superannuation Interest Roll Back amount to a Member Lump Sum Superannuation Interest. Unless otherwise allowed under the Superannuation Laws and requested by the Member this will not create a new Superannuation Interest.

5.5 Where the Member requests the transfer of a Member Lump Sum Superannuation Interest to commence a new Member Income Stream Superannuation Interest, notwithstanding that the Member may have an existing Member Income Stream Superannuation Interest, this will create a new Superannuation Interest where the Trustee decides a new Superannuation Interest is to be created and that the Superannuation Laws allow.

5.6 Where the Trustee transfers an amount between Superannuation Interests the Trustee may satisfy the transfer amount by allocating Assets between the Member’s Superannuation Interests equal in value to the transfer amount.

5.7 The Trustee may transfer a Member Superannuation Interest to another Complying SMSF or superannuation fund where the Trustee of the transferee fund accepts the terms and conditions of any transfer including to continue any Income Stream Superannuation Interest on behalf of the Member under the same terms and conditions as the Income Stream Superannuation Interest in the Transferor Fund.

Example: A Member of the Fund may be a reversionary beneficiary of a pension

(“the original pension”) in accordance with the requirements of a SMSF Will. To ensure that the deceased member’s wishes are met upon transfer of the original pension to another fund the Trustee of the transferor fund must require the Trustee of the transferee fund to pay the pension in identical terms and conditions without variation to that of the original pension.

Rule 6 – Accepting Member Contributions, Rollovers and Transfers

6.1 The Trustee may accept an Authorised Contribution, a Rollover Superannuation Benefit or a Transfer Superannuation Interest on behalf of a Member or for the Fund from a Trustee of a Superannuation Fund, a Foreign Superannuation Fund, an employer, a Spouse, a Relative or any other person or entity.

6.2 The Authorised Contribution, Rollover Superannuation Benefit or any Transfer Superannuation Interest may be by way of Cash, Assets or a Contribution In Kind. Where an Authorised Contribution is made by way of one or more Assets or a Contribution In Kind the Trustee is to determine a value for the Contribution under the Superannuation Laws or as required by the Regulator.

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6.4 Where the Trustee, by mistake accepts a Contribution in excess of any caps or limits under the Superannuation Laws, the Trustee may refund the Contribution to the contributor or any other person and within the time required under the Superannuation Laws or where the Regulator otherwise allows. The Trustee is to also refund or pay back any Contribution as required by the Regulator pursuant to an assessment, amended assessment or any other direction.

6.5 The payment where required may be processed through any appropriate government required payment system including Super Stream.

Rule 7 - Creating an Investment Strategy for the Fund and Members

7.1 The Trustee of the Fund must formulate and give effect to an Investment Strategy for the Fund that meets the Superannuation Law and Regulators requirements for a complying SMSF. The Investment Strategy which includes the Fund’s Insurance Strategy pursuant to Rule 12 must be regularly reviewed by the Trustee of the Fund.

Note: The Explanatory Memorandum of the Superannuation Laws states that “SIS

subregulation 4.09(2) to require trustees to regularly review the entity’s investment strategy. Trustees should conduct a review of the entity’s investment strategy on a regular basis to take into account factors such as the changing circumstances of their fund and its members. Trustees may evidence this requirement by documenting decisions in the minutes of trustee meetings that are held during the income year.”

7.2 The Trustee may at any time create a separate Investment Strategy on behalf of one or more Member Superannuation Interests or Fund Accounts including a Reserve Account.

7.3 The Trustee may at the request of a Member, but subject to the Trustee’s discretion, establish a separate Investment Strategy for a Member Superannuation Interest. The Trustee may acquire a specific Asset on behalf of a Member Superannuation Interest provided the Member Superannuation Interest has sufficient resources to do so and the Superannuation Laws allow.

7.4 The Trustee may transfer Assets between Investment Strategies and also between Superannuation Interests in the Fund. Any such transfer will be at a value to be determined by the Trustee or as required by the Superannuation Laws or the Regulator.

Example: A SMSF holds BHX shares in a separate investment strategy for a

Member’s Lump Sum Superannuation Interest (“LSI”) with a market value of $50,000. Additionally the Member has a Transition to Retirement Income Stream Interest (“TRIS”) in the same SMSF with a separate investment strategy that has exhausted its cash component. The Trustee of the Fund may transfer the BHX shares to the TRIS, sell them to pay the income stream requirements in accordance with the TRIS. Simultaneously the Trustee transfers $50,000 of CBA shares from the Member’s TRIS to the Members LSI to fund the transfer of assets.

7.5 The Trustee of the Fund does not have to hold separate Assets aside for Reserve Account purposes unless the Superannuation Laws require and the Trustee determines to do so.

7.6 The Trustee may alter an Investment Strategy for the Fund, an Account of the Fund, a Superannuation Interest or Reserve Account at any time.

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the Investment Strategy subject to receipt of the Authorised Contribution or Insurance Policy proceeds is deemed to be amended to encompass the Contribution or Insurance Policy proceeds until such time as the Trustee decides otherwise.

7.8 The Trustee may be required under the Superannuation Laws to complete a Risk Management Statement or such other Statement where the Trustee invests in derivatives, options, instalment warrants or other products with underlying borrowings or leverage. The Trustee is to comply with any such requirements to ensure the Fund remains a Complying SMSF.

7.9 Where the last surviving Member of the Fund dies, the Member’s LPR if appointed as Trustee or Director of the Fund’s Corporate Trustee must, prior to making any Death Benefit payments on behalf of the deceased Member distribute any surplus, Assets or monies in Fund Reserve Accounts. Such distribution may include finance for an anti-detriment payment in accordance with section 295-485(a) of the ITAA 1997, a payment to any past Member or the deceased Member’s Lump Sum Superannuation Interest, Member Income Stream Superannuation Interest, their Dependants, Legal Estate or charity.

7.10 Despite anything else contained in the Rules of the Fund where a Member transfers

property or an interest in property to the Fund on condition that the property or interest in property is to be held specifically for the Member to enable the Member to obtain a tax or duty exemption or concession under State taxes, then:

a) the property or interest in the property can only be held in the Fund specifically for the transferring Member so that the property or interest in the property cannot be pooled with the contributions or other assets of another Member and no other Member can obtain an interest in the property. If necessary the Trustee may create a sub-fund for the purposes of holding the property; and b) The property or interest in property, or the proceeds of sale of the property or

interest in the property if sold, can only be held in the Fund to be provided to the transferring Member as a Retirement Benefit.

Rule 8 – Making Investments for the Fund and Members Benefit

8.1 The Trustee must invest the Cash and Assets of the Fund in accordance with an Investment Strategy. Any investment is to meet the Superannuation Laws, any relevant Trustee Law and ensure that the Fund retains its Complying SMSF status nor gets penalised thereby ensuring that the Trustee does not breach the relevant laws relating to related party investments or loans including the In-House Assets Test, the Sole Purpose Test or the holding of any specific Asset class or type.

8.2 Provided the Superannuation Laws allow, the Trustee may acquire and invest in any Asset or Cash wherever situate in or outside Australia including, but not limited to the following:

a) Stocks and shares and other equity interests of any entity (including a company), units in a unit trust both private and public with an investment to include preference, convertible preference shares and units or any other type of equity, unit or hybrid equity instrument in an entity;

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transaction, the Trustee must ensure that the documentation relating to the transaction, including any indirect, joint venture or partnership interest, satisfies the Fund’s Auditor if required and the Superannuation Laws. These include, but are not limited to, an appropriate valuation;

c) Financial products including instalment warrants, SMSF borrowing trusts, options, futures, warrants, endowment warrants, unit trusts, property syndicates, joint ventures, hybrid trusts, pooled superannuation trusts and other instruments that provide the Trustee with a reward on its investment; d) Debt instruments including government and corporate bonds, mortgages,

chattel leases, fixed term deposits, hybrid debt instruments and any other type of instrument where the investor receives an interest type of return;

e) Discount investments where the Members of the Fund may obtain a discount on services under an agreement with a third party provided that the return available on the investment is the same as that which would be obtained by an investor not able to participate in the discount unless the Superannuation Laws or Regulator allow and that the investment does not cause the Trustee to breach the Superannuation Laws;

f) Art, sculpture, wine, vintage cars or any other collectable provided the Superannuation Laws allow and the Trustee complies with any and all requirements in relation to the holding of a collectable;

g) A business including an active business such as share trading, property development or primary production provided the investment in the business does not breach the Sole Purpose Test, the Fund’s Audit Standards or the Superannuation Laws;

h) Intellectual property including a trade mark, copyright, licence, patent. The holding of the intellectual property may be direct, indirect, as part of a joint venture or as an interest by way of a licence;

i) A Superannuation Income Stream, Pension or annuity from a life insurance company, Superannuation Fund, financial institution, trust, body corporate or person;

j) A life insurance or friendly society bond, policy or other investment including but not limited to an endowment, whole of life or other investment or risk policy issued by any life insurance company wherever situate;

k) Any managed fund, managed investment scheme, collective investment vehicle, trust, Bare Trust, custodial trust, holding trust or unit trust including a pooled superannuation trust provided the investment does not breach the Superannuation Laws;

l) Entering into any joint venture, partnership, association or co-operative provided the Trustee assesses the risk of the venture and in particular the cash flow requirements and legal nature of the venture;

m) Any other investment including a prudent investment under Trust Law;

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o) Instalment warrant and other SMSF borrowing arrangements including single acquirable assets acquired under a limited recourse lending arrangements pursuant to sections 67A and 67B of the Superannuation Industry Supervision Act 1993;

p) Any investment that meets the sole purpose Test and sections 66, 67, 84, 85 and 109 of the Superannuation Industry Supervision Act 1993;

provided that the acquisition, investment and holding of the Asset is in accordance with the Fund’s or Superannuation Interest’s Investment Strategy whichever is relevant and in addition, the acquisition, investment and holding of the Asset does not breach the Superannuation Laws, including the Sole Purpose Test or the In-House Assets test.

8.3 The Trustee may acquire, hold and invest in any currency including maintaining a non- AUD$ cash account. This also includes any digital currency or payment system including but not limited to Bitcoin.

8.4 Subject to any requirements under the Superannuation Laws or by the Regulator the Trustee may at any time determine the value of an Asset of the Fund but is otherwise not compelled to do so. However if the Superannuation Laws require a valuation at a specific time in respect of a Fund Asset the Trustee is to abide by the requirements of any valuation laws, Regulator guidelines or rules.

8.5 At any time the Trustee of the Fund may create an Asset for the Fund which is to be dealt with wholly and exclusively by the Trustee of the Fund as an Asset of the Fund. This may include patents, copyright, trademarks or any other form of property.

Rule 9 – Establishing a Reserve Account for the Fund

9.1 The Trustee may establish one or more Reserve Accounts for the Fund which may include amongst others an Investment Reserve, Anti-detriment Reserve, a Contributions Reserve, a Pensions Reserve, an Income Stream Reserve and a Self Insurance Reserve provided the Superannuation Laws allow. Any Reserve Account may be for the benefit of current, past and future Members, their dependants, Legal Estate or the Trustee.

9.2 The Trustee may make additional Rules regarding the use, purpose and payment of Superannuation Benefits, General or Specific Expenses or for any other thing from any Reserve Account. In making any Rule the Trustee is to take into account any guidelines or rulings issued by the Regulator or the Australian Prudential Regulatory Authority. Any Rule the Trustee makes regarding a particular Reserve Account may be declared by the Trustee to be a Special Rule.

9.3 Subject to the Superannuation Laws and the Fund remaining a Complying SMSF, the Trustee may add by way of Cash or Assets to a Reserve Account from any Member Superannuation Interest, any other account of the Fund, any other Reserve Account, from Earnings or from any other source including another Superannuation Fund, trust or entity.

Example: Part Five of the SIS Regulations 1994 prevent the Trustee of a SMSF

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9.4 The Trustee may deduct and allocate from any Reserve Account of the Fund any amount or Asset. Such amount or Asset may be applied in whole or part to be added to Earnings or for the benefit of any Superannuation Interest, to pay any General or Specific Expense of the Trustee or the Fund, to be added to another Reserve Account in the Fund or any other Superannuation Fund, to be added to any other account or Superannuation Interest, to be added to Fund or Superannuation Interest Earnings, make a Transfer Superannuation Interest to another Superannuation Fund or the Fund itself, to fund directly from the Reserve Account a Member Lump Sum Superannuation Interest or Member Income Stream Superannuation Interest, pay a Death Benefit or for any other purpose.

9.5 Subject to the Superannuation Laws, Regulator’s Guidelines and the Fund retaining its Complying SMSF status, any trust distributions, insurance policy proceeds, other distributions, windfall gains, winnings or gifts that the Trustee does not declare as Earnings or Authorised Contributions of any Account or Member Lump Sum Superannuation Interest may be allocated to a Reserve Account. The Trustee has sole discretion as to which Reserve Account these amounts are to be added to.

9.6 No Member, Dependant of a Member, deceased Member, the Member's Legal Personal Representative or a deceased Member's Legal Estate has any right or entitlement to a Reserve Account unless so authorised under the Rules of the Fund.

9.7 If the allocation of amounts from a Fund Reserve creates a tax liability for the Trustee of the Fund or a Member of the Fund, the Trustee may seek professional advice prior to entering into any allocation to determine its taxation consequences.

Example: An allocation from a Reserve, except where the allocation adheres to

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Part Two – Some Important Planning Considerations

Rule 10 – Creating a Member SMSF Living Will

10.1 A Member may provide a Trustee with a Member SMSF Living Will detailing any

Superannuation Benefits requested to be paid in the event of the Member’s Temporary or Permanent Incapacity, Terminal Illness or other incapacity event including mental incapacity whereupon a Member may be paid benefits, Superannuation Benefits or Reserve benefits from the Fund without breaching the Superannuation Laws or the Sole Purpose Test.

Example: James Smith, who is in receipt of an Accounts Based Pension makes a

binding SMSF Living Will requiring the Trustee of the Fund to continue paying $50,000 or the minimum pension payment for the benefit of any aged care in the event that he becomes mentally incapacitated and needs to be placed into aged care.

10.2 The Trustee may accept some or all of the Member’s request under the Member

SMSF Living Will including the category of Incapacity or other Superannuation Benefits to be paid, the amount to be paid, whether Reserve Benefits may be paid, to whom the Incapacity Superannuation Benefits are to be paid and the Member’s Replacement Trustee, however, the Trustee is not compelled to do so.

10.3 If the Trustee formally accepts some or all of a Member’s SMSF Living Will, then at

the discretion of the Trustee, the terms and conditions of the Member SMSF Living Will so accepted may become a Special Rule of the Fund provided the Superannuation Laws allow and the Fund retains its Complying SMSF status.

10.4 The Trustee may determine whether the Member SMSF Living Will Rule can be

varied and in what circumstances and by whom.

10.5 The Trustee and Member may seek to appoint a SMSF Professional prior to making

any formal request or acceptance of a Member’s SMSF Living Will.

Rule 11 – Creating a Member SMSF Estate Plan and SMSF Will

SMSF Will and Non-Lapsing Binding Nomination

11.1 A Member may provide the Trustee with a request to accept any of the following:

a) A non-binding death benefit nomination; b) A binding death benefit nomination;

c) A non-lapsing binding death benefit nomination

d) A SMSF Will incorporating a non-lapsing binding death benefit nomination and non-lapsing directions to the trustee

11.2 Any of the documents referred to in Clause 11.1 above may provide written

direction to the Trustee requesting:

a) The manner and form in which Death Benefits will be paid in the event of the Member’s death to one or more beneficiaries including as a lump sum, pension or combination of both.

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allowed to receive a Member’s Death Benefits under the Superannuation Laws. c) The amount or amounts of the Death Benefit to be paid to one or more beneficiaries in the event of a Member’s death including the transfer of part or the whole of any Fund Asset in satisfaction of the payment of an amount of Death Benefit.

d) The terms and conditions upon which a beneficiary is to receive a Death Benefit from the Member’s SMSF Estate including whether the Death Benefit is to revert to another person, Legal Estate or entity in the event of the beneficiary’s death, incapacity or the happening of a particular event.

e) The terms and conditions regarding the payment of any Reserve Benefit to the deceased Member’s Dependants or Legal Estate.

f) The terms and conditions regarding the payment of any insurance proceeds payable on the life of the Member including a payment to an Anti-Detriment Reserve, the deceased Member’s Dependants or Legal Estate.

11.3 The Trustee of the Fund may accept in writing or at a Trustee Meeting part of or all

the Member’s Non-Binding Death Benefit Nomination, Non-lapsing Binding Death Benefit Nominations and SMSF Will request, however, the Trustee is not obligated to do so.

11.4 Solely at the Trustee’s discretion if the Trustee accepts part of or all a Member’s

Non-Binding Death Benefit Nomination, Non-lapsing Binding Death Benefit Nominations and Member SMSF Will, the Nominations or SMSF Will shall become a Special Rule of the Fund.

11.5 The Trustee may at the request of the Member create a Special Rule to make

provision for the requirements of that Member’s Non-Binding Death Benefit Nomination, Non-lapsing Binding Death Benefit Nominations and Member SMSF Will.

Note: The Trustee may determine whether any Special Rule created for a Member

can be varied and under what circumstances including allowing a Member or the Trustee to be the only person that can vary the Special Rule.

11.6 The Trustee may at the request of the Member amend the provisions of the Deed

to enable the provisions of the Special Rule to establish the applicable Member’s Non-Binding Death Benefit Nomination, Non-lapsing Binding Death Benefit Nominations or SMSF Will.

11.7 The Trustee and Member may first obtain expert advice from a SMSF Specialist

adviser prior to making any formal request or acceptance of a Member’s SMSF Will.

11.8 The Trustee is not bound by any Member’s Non-Binding Death Benefit Nomination. Rule 12 – Creating an Insurance Strategy and Insurances in the Fund

12.1 The Trustee of the Fund may create an Insurance Strategy for the Fund, a Member

of the Fund or any Superannuation Interest in the Fund and must create an Insurance Strategy if the Superannuation Laws require. The Insurance Strategy shall form part of the Fund’s Investment Strategy.

12.2 The Trustee of the Fund may enter into any Contract of Life Insurance both within

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paid by the Trustee of the Fund may be deducted from Earnings of the Fund but may alternatively be deducted from one or all Member Superannuation Interests or Reserve Accounts. Where the Trustee is prohibited under the Superannuation Laws from acquiring a specific type or style of Contract of Life Insurance the Trustee must not acquire this policy.

Warning: The Commissioner has noted that if insurance premiums have been

deducted from a member’s account then any payout should be made to that account. Any premium repayments made from General Expenses of the Fund may not be deductible to the Fund.

12.3 The Trustee of the Fund is authorised to create a Self Insurance Reserve Account

with such terms and conditions as the Trustee decides provided that the Superannuation Laws allow.

12.4 No Member, Dependant of a Member, Legal Personal Representative of a Member

or any other person has any interest in any Contract of Life Insurance or Self Insurance Reserve Account held by the Trustee even where it may be held in the name or for the benefit of the Member unless required by the Superannuation Laws or the Regulator.

12.5 Subject to the Superannuation Laws at the time, the Trustee may distribute,

transfer or otherwise deal with any proceeds or distribution payable from or pursuant to a Contract of Life Insurance in accordance with any Insurance Strategy.

12.6 No Member, Dependant of a Member, Legal Personal Representative of a Member

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Part Three - Rules to Maintain and Operate the Fund

Rule 13 – Fund Assets, Contracts and Transactions to be in Trustee’s Name 13.1 The Trustee is to hold all Assets of the Fund in the name of the Trustee however a

Custodian may hold an Asset on behalf of the Trustee provided the Superannuation Laws allow. Where there is a change in name of the Trustee or a change in Trustee, the Trustee, as soon as practicable, must register all of the Fund’s assets to reflect the change of name of the Trustee.

Note: Where the Trustee of the Fund is a Corporate Trustee any change in

membership of the Fund by an additional member or a member’s death requires a change or Directorship of the Corporate Trustee. This change does not require a change in investment registers or

titles offices in which the Fund holds investments. In

contrast SMSFs with individual Trustees where there is an addition of a new member Trustee

or

the

death of a previous member

Trustee requires the Trustees to provide appropriate notification to all investment registers and titles offices of the changes to the Trustee of the Fund.

13.2 Any contract, transaction or agreement of whatever nature undertaken by the Fund

must be in the name of the Trustee unless the Trustee has appointed a Custodian or other person to act on behalf or as agent for the Trustee.

Note: The Superannuation Laws state that “SIS regulation 4.09A requires that a

trustee of an SMSF keeps money and other assets of the fund separate from any money or

assets

held by the trustee personally or by a standard employer-sponsor

or an associate of a standard employer-sponsor.”

13.3 No Member, Dependant of a Member or deceased Member, the Member's Legal

Personal Representative, a deceased Member's Legal Estate, an Employer Sponsor or Related Party of the same has any right, entitlement to any Asset of the Fund or may enter into any contract, transaction or agreement of whatever nature with the Fund unless the Superannuation Laws allow and the Fund continues to retain its Complying SMSF status.

13.4 Where the Trustee enters into a transaction, arrangement, declaration or

agreement, whether in writing or orally and the transaction, arrangement, declaration or agreement would result, in the opinion of the Fund’s Auditor, that the Fund may be treated as a Non-Complying SMSF or be subject to a fine, the Trustee and other party to the transaction, arrangement, declaration or agreement are to treat the actions as void ab-initio. The Trustee is to ensure that both parties are to be put in, as best as possible, the same financial condition as arose prior to the entering into of the relevant transaction, arrangement, declaration or agreement.

Rule 14 – Trustee Responsibilities

14.1 It is the responsibility of the Trustee, at all times, including under any Trustee Law

to:

a) ensure that the Fund remains a Complying SMSF;

b) ensure that the Fund Trust Deed and Rules remain current; c) act honestly in all matters concerning the Fund;

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care, skill and diligence as any normal prudent Trustee;

e) ensure that the Trustee’s duties and powers are performed and exercised in the best interests of Members of the Fund;

f) not enter into any contract, transaction or agreement or do anything that would prevent or hinder the Trustee in suitably performing or exercising the Trustee’s functions and powers;

g) disclose any conflict of interest in any dealing with or undertaking any transaction or investment on behalf of the Fund;

h) provide to Members access to all and any information required to be given or viewed by Members under the Superannuation Laws but subject to the Privacy Act 1988;

i) ensure the efficient administration of the Fund including, but not limited to, the payment of all taxes, excess contributions taxes and other imposts that must be paid by the Fund and the lodgement of all compulsory documentation to the Regulator in respect of the Fund and ensure that the Fund meets its Superannuation Law compliance responsibilities;

j) keep all records, documents and minutes of valid Trustee meetings to enable the efficient administration and audit of the Fund by the Auditor and the Regulator so as to comply with all Superannuation Laws in respect of the keeping of records, documents and minutes for the Fund;

k) notify the Regulator, in accordance with the provisions of the Superannuation Laws, of significant events and other events that occur in the Fund including any change in Trustee where required. The Trustee is to notify the Regulator of these events within the time period required;

l) not seek to delegate Trustee powers and responsibilities under the Rules of the Fund or the Superannuation Laws unless otherwise permitted;

m) keep informed of the Superannuation Laws and if required by the Superannuation Laws or the Regulator, undertake any education or other mandatory or voluntary knowledge requirements;

n) deal with the Regulator and any other regulatory authority as required under the Superannuation Laws;

o) create an Insurance Strategy for the Fund;

p) be aware of any changes to the Superannuation Laws that requires the Trustee of the Fund to remain a Complying SMSF;

q) to pay on time any fines levied by the Regulator or Court.

14.2 The Trustee must not be paid or otherwise receive any remuneration for acting or

carrying out its responsibilities as Trustee of the Fund unless otherwise permitted under the Superannuation Laws and/or any determination by the Regulator.

14.3 Where required by the Superannuation Laws the Trustee may hear any complaint

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Rule 15 – Trustee Powers

15.1 Subject to the Superannuation Laws the Trustee has unlimited powers as to the

administration and control of the Assets of the Fund. The administration and control of the Assets of the Fund by the Trustee are identical to those as if the Trustee were the legal and beneficial owner of those Assets. These include the right to sell, call in, convert into money, grant options or rights to purchase, mortgage, charge, sub-charge, or otherwise deal with or dispose of or transfer any item or Asset comprising the whole or part of the Fund including a Member’s Superannuation Interest or a Reserve Account.

15.2 The Trustee has all the powers that a Trustee has at law and all the powers

specifically conferred on the Trustee by these Rules including, but not limited to: a) engage SMSF Professionals and other advisers: to employ or engage

agents or professionals in the execution of transactions, undertakings, acquisitions, disposal and other powers of the Trustee and to transact any business or to do any act required to be done in connection with the administration of the Fund including engaging a SMSF Auditor and to act upon the opinion or advice of any such person without being responsible for any loss or damage occasioned by acting in accordance therewith;

b) enter into contracts and undertake transactions: to enter into contracts, undertakings and other transactions for the benefit of the Fund and its Members whatsoever and wheresoever situate;

c) acquire Corporate or Trust securities: with respect to any company or trust in which the Trustee holds shares, stocks, debentures, options, convertible notes or is otherwise interested or concerned (“securities”) to exercise all of the powers authorised under the constituent and any other relevant documents concerning the powers of equity, debt and other interest holders of the entity; d) acquire Insurance Policies: provide the Superannuation Laws allow to effect

or acquire policies of insurance from entities within or outside Australia of any Asset of the Fund or of kind on the life of any Member or in respect of sickness, incapacity, trauma or accident to any Member, to pay premiums, transfer, surrender, change the status of and deal with these policies in any manner whatsoever, whether or not these policies are individual policies on the life of one person or a group policy on the lives of two or more persons, to purchase or enter into insurance or investment bonds whether or not the bonds are linked to a policy over the life of any person. The Trustee may also acquire Trustee insurance to cover audit fees or penalties.

e) deal with real property: to acquire, dispose of, exchange, strata title, subdivide, mortgage, sub-mortgage, lease, sub-lease, grant, maintain, insure, improve, renovate, re-lease or vary any right or easement or otherwise deal with any interest in real property;

f) enter into lease arrangements: to rent premises from any person, acquire the interest of any lessee in any lease, purchase, hire, take on lease, grant leases, sub- leases, tenancies or rights of any nature to any interest in real estate, motor vehicles, computer hardware and software, fixtures and fittings, furniture, utensils, plant and equipment and other personal property of any description;

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the Trustee may consider appropriate;

h) lend money: subject to the Superannuation Laws and the Fund retaining its Complying SMSF status and not being penalised to lend and advance moneys; i) borrow money: subject to the Superannuation Laws and the Fund retaining

its Complying SMSF status, to borrow or raise any financial accommodation or Assets including under an instalment warrant or other borrowing or limited recourse lending arrangement authorised pursuant to sections 67, 67A and 67B or any other section allowing a Trustee of a SMSF to borrow under the Superannuation Industry Supervision Act 1993 or the Superannuation Laws, and to assign, pledge, mortgage or charge any of the Fund as security for such financial accommodation;

Note: The limited recourse lending laws contained in section 67A and 67B of

the SIS Act 1993 provide an exemption to the Trustee borrowing money. However without a specific borrowing power – aligning the Rules with the borrowing exemptions the Trustee cannot borrow – even if it meets the exemption conditions in section 67A. Sub-rule 15.2 j) provides the Trustee with the specific power to enter into a limited recourse lending arrangement under section 67, 67A and 67B plus any future amendments that may be made to the Superannuation Laws allowing the Trustee of a SMSF to borrow.

j) to create trusts: to create trusts, companies and other entities for the purpose of investment by the Trustee including any Bare Trust, custodian trust or Holding Trust arrangement;

k) enter into futures contracts and options: both within and outside Australia to buy sell, open, close-out or otherwise deal in futures contracts of all kinds, to enter into, vary, exercise, abandon or sell any put or call option, CFD or rights, to place bids, make offers, hedge and effect orders including buying, selling, straddle, switch and stop-loss order, to tender and take delivery of commodities and currencies which are the subject of any futures contract or option and otherwise to do and perform all things so as to operate on, utilise or deal with the facilities of any stock or futures exchange no matter where situate provided the Trustee maintains a risk management strategy if required under the Superannuation Laws;

l) deal with personal property: to acquire, dispose of, exchange, hire, lease, maintain, improve, mortgage or otherwise deal with any interest in personal property;

m) deal with intellectual property: to apply for, purchase, create or otherwise acquire and to sell patents, patent rights, copyrights, trademarks, designs, formulae, licences, concessions, know-how and the like, conferring any exclusive or non-exclusive or limited right to use of any other intellectual property rights and to use, exercise, develop or grant licences in respect of or otherwise turn to account the property rights or information so acquired; n) obtain agencies, franchises and licences: to apply for, purchase and hold

any permit, agency, franchise or licence which may be desirable or required to enable or facilitate the carrying on of any business which the Trustee is empowered to engage in and to surrender, relinquish, sell, vary or assign the same provide the said agency, licence or business does not breach the “Sole Purpose Test” or the Superannuation Laws;

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authority or discretion contained in the Rules or the Deed;

p) pay General Expenses: to pay insurance premiums, rates, taxes, rents, and outgoings in connection with any Assets of the Fund from the Assets, Reserve Accounts or primarily the Earnings of the Fund and to manage such Assets and effect improvements and repairs as the Trustee may consider necessary or advisable;

q) set aside money in the Fund: to set aside out of the Earnings of the Fund or Reserves from time to time such money as may in the opinion of the Trustee be sufficient to meet any debt, tax or obligation due or accruing;

r) deal with itself: notwithstanding any rule or law or equity to the contrary, to acquire as property of the Fund real or personal property the legal and beneficial interest in which is at the date of such acquisition the absolute property of the Trustee or Fund Custodian provided that any property so acquired is acquired for a consideration being not greater than the current Market Value of the property and upon which such acquisition the beneficial interest in and to the property shall be held by the Trustee according to the Rules;

s) deal with Choses-in-action: to acquire choses-in-action including debts and obligations of all kinds for value or by way of gift or at a discount or at a premium and to assign, release, vary, relinquish or otherwise deal with the choses-in-action in any way whatsoever on such terms and conditions as the Trustee may see fit;

t) receive gifts or distributions: to receive property by gift inter vivos or by distribution under a will, SMSF Will or under the provisions of any other trust or otherwise from any person as an addition to the Fund, whether subject to liabilities or not and to hold these gifts according to the Rules and to administer such additions under these provisions;

u) instigate legal proceedings: to institute, join in and defend proceedings at law or by way of mediation or arbitration and to proceed to the final end and determination of, or to compromise the same and to compromise and settle any such dispute or proceedings for such consideration and upon the terms and conditions as the Trustee may decide;

v) bloodline benefits: to limit the range of persons, including directly or indirectly that may obtain a Death benefit from the Fund in the event of a Member’s death. This includes limiting a payment from the Fund to the deceased Member’s legal estate where the Administrator or Executor of the Estate may not pay regard to any limitation of the distribution of a Member’s Death Benefits to their bloodline;

w) trade in foreign and digital currency: to undertake, contract, carry out or do anything including acquiring Assets in a foreign or digital currency and dealing in a foreign or digital currency;

x) exercise all other powers: to do all such other things as may be incidental to the exercise of the powers, rights, discretions and authorities hereby conferred on the Trustee;

y) indemnities: to give indemnities to or on behalf of any person the Trustee thinks fit including the Trustee and for the Trustee to be indemnified from the Assets of the Fund where the Trustee is fined for a breach of the Superannuation Laws;

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any Asset acquired or to be acquired by the Trustee under such terms as the Trustee thinks fit;

aa) power to appoint an attorney: The Trustee may in writing delegate the exercise of all or any of the powers or discretionary authorities hereby conferred on the Trustee and execute any powers of attorney or other instruments necessary to effectuate such purpose;

bb) bank bills: the Trustee may raise money in any lawful manner including by drawing, endorsing, accepting or otherwise dealing with any bill of exchange, promissory note or other negotiable instrument. The Trustee may secure the repayment of any moneys so raised with interest at such rate as the Trustee thinks fit and upon any terms and conditions in all respects as the Trustee thinks fit. Any money raised by the Trustee will form part of the Fund;

cc) Trustee’s duties: any of its directors, employees, delegates or agents may be involved in the exercise of the Trustee’s powers and discretions even if they have a conflict of interest or duty;

dd) conflict of interest: generally to exercise or concur in exercising all the foregoing powers and discretions contained in this Deed or the Fund’s Governing Rules or otherwise conferred notwithstanding that any person being a Trustee or any person being a Director or Shareholder of a Trustee hereof (being a company) has or may have a direct or personal interest (whether as trustee of any other settlement or in his person capacity or a shareholder or director or member or partner of any company or partnership or as a unit holder in any Unit Trust or beneficiary of any Discretionary Trust or otherwise howsoever) in the mode or result of exercising such power or discretion or may benefit either directly or indirectly as a result of the exercise of any such power or discretion and notwithstanding that the Trustee for the time being is the sole Trustee;

ee) bank accounts, cash management trusts and promissory notes: to open in the name of the Trustee of the Fund bank accounts, cash management trusts, term deposits and any other cash style products including the giving and taking of promissory notes;

ff) additional powers:

i. real property: to purchase, take on, lease or licence, develop, construct, hold, impose, sell, transfer, convey, surrender, lease, licence or otherwise deal with any real property and, without limiting the generality of this rule, to develop any commercial or retail premises and hold or sell, transfer, convey, surrender, lease or licence such premises;

ii. grant or take options: to grant or take any put or call option for the purchase of any real or personal property of the Fund, whether the sale occurring on exercise of such option will be at a profit or not;

iii. no profit: without limitation to the above, to exercise any of its powers, including the power to sell and the powers to deal with real or personal whether at a profit or not;

SMSF TRUST DEED ESTABLISHMENT SAMPLE SMSF